With the chaotic real estate market’s recent ups and downs, we have rapidly switched from a seller’s to a buyer’s market in a matter of what seems like just weeks. With that change comes less bargaining power for the seller and much more for the buyer.
Rising mortgage rates and stubbornly high home prices have caused many buyers to put their plans on hold, which has motivated sellers to throw in “freebies” to attract the buyers who remain.
Sellers have been offering to fund repairs, cover closing costs and even pay for bidders to buy down their mortgage rates. Buyers today are way more demanding and selective. They are willing to wait to find the perfect house that has most of what they want without having to do major renovations. This certainly was not the case during the pandemic. Now, buyers are looking for a home with a recent new roof, fairly new AC units, stainless steel appliances, modern flooring (no carpeting) and a home in excellent condition.
Sellers do have more options to offer such as a one-year home warranty, a price reduction or cash back at closing for any renovations, adding quality furnishings at no extra cost or negotiating any other option the buyer will consider.
Where once homes were sold in less than 24 hours, now some are sitting on the market for months! A recent survey by Redfin stated that a record 13% of home sales included a price cut, a final sale price below the list price in addition to concessions, which included money towards repairs and mortgage-rate buydowns.
So, if you are going to sell your home, be prepared for the “new” market which is definitely in the buyer’s favor and be willing and ready to negotiate.